Chubb profit up 79% on fewer catastrophes

KristinJones

Chief Executive John D. Finnegan said that the latest quarter's per-share operating earnings were the highest in the company's history, and noted "unusually low catastrophe losses."

The company also raised its full-year outlook, now seeing operating earnings of $6.70 to $6.80 a share, up from its July view of $5.70 to $5.95 a share.

For the fourth quarter, Chubb expects operating income of $1.66 to $1.76 a share, topping the $1.51 estimate of analysts recently surveyed by Thomson Reuters.

Like many U.S. property insurers, Chubb reported mostly weaker core earnings last year as catastrophe losses ballooned after a series of massive disasters, including a rash of destructive tornadoes and damage from Hurricane Irene. In the latest quarter, Chubb was helped by a relative lack of disasters. In the latest quarter, catastrophe losses were $17 million before taxes, compared with $420 million in losses a year earlier.

Chubb reported a profit of $533 million, or $1.98 a share, up from $298 million, or $1.04 a share, a year earlier.

Operating income, which excludes realized investment gains and losses, rose from 88 cents a share a year earlier, as net premiums written increased 1.1% to $2.91 billion.

The company reported net realized investment losses of less than $1 million, compared with gains of $71 million a year earlier.

The combined loss-and-expense ratio, or portion of premium dollars spent on claims and expenses, improved sharply to 86.3% from 102.6%. Excluding the impact of catastrophes, the combined ratio decreased to 85.7% from 88.2%.

Shares were up 1.3% at $80.45 in after-hours trading. Through the close of regular trading Thursday, the stock was up 15% so far this year.

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